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UkoKoshka [18]
1 year ago
8

Margo borrows $2000, agreeing to pay it back with 8% annual interest after 6 months. How much interest will she pay?Round your a

nswer to the nearest cent, if necessary.
Mathematics
1 answer:
Amiraneli [1.4K]1 year ago
6 0

Principal of the loan = $ 2,000

Interest rate = 8% annually or 0.08

Period of the loan = 6 months or 1/2 year

For calculating the interest that Margo will pay, we use the simple interest formula, this way:

Interest = Principal * interest rate * period of the loan

Replacing with the values we know:

Interest = 2,000 * 0.08 * 0.5

Interest = $ 80

Interpretation

Margo will pay $ 80 of interest for the loan after 6 months

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